AT&T decides to bring broadband call center back onshore

AT&T has decided to bring its broadband tech support call center back to the …

AT&T will be returning approximately 2,000 call center jobs to the US, as the company has decided to shutter an Indian call center that handles tech support calls for the telecom's broadband service. AT&T cited cost as the primary reason for bringing the jobs back to the US, saying that an agreement with the Communications Workers of America on salary and benefits make having the call center employees on its staff feasible.

"We're pleased that the Communications Workers of America has recognized the mutual importance of creating these jobs with competitive wages and benefits that enhance the company's ability to compete while creating good jobs," said Bill Blase, AT&T executive vice president for Labor Relations.

Is it really all about AT&T suddenly deciding that a US call center would be cost competitive with India, or are there other factors at work here? India has been a popular destination for tech-related jobs in the US due in no small part to the large population of English-speaking workers in that country who are also technically proficient.

Companies have also been increasingly willing to offshore call centers, which occasionally causes a backlash with their customers. Dell decided to stop routing tech support calls for some of its corporate products to India after complaints from their business customers. At the time, a Dell spokesperson said that the company's customers were telling them that they "didn't like the level of support they were getting" from its Indian call center.

Other companies are rethinking their offshore call centers as well. In June, Apple cancelled plans for a large call center in Bangalore, deciding instead to keep the operations in the US.

Looking at the larger picture, India still has a relatively inexpensive labor market compared to the US, along with a large number of competent call-center workers. Companies which value cost-control above all else may be inclined to keep their call centers in india. But if customers complain about a lack of competency and poor support, some companies will likely reevaluate their strategies.

The Communications Workers of America, the union representing AT&T's call center workers in the US, is choosing not to play the competency card. It is instead calling the agreement with AT&T "a terrific achievement" that "reverses the flow of work from contractors back to our bargaining units" with "superior" wages and benfits.

Eric Bangeman
Eric has been using personal computers since 1980 and writing about them at Ars Technica since 2003, where he currently serves as Managing Editor. Twitter@ericbangeman